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Log inHealth savings accounts touted at Bangor business lunch
Health savings accounts touted at Bangor business lunch
by Outspoken on Thu May 22, 2008 5:24 am
Health savings accounts touted at Bangor business lunch
By Meg Haskell
Staff Writer Bangor Daily News
BANGOR, Maine — A small group of area businessmen and businesswomen gathered at the Sea Dog Restaurant on Wednesday to hear a presentation about health savings accounts, a form of health care coverage that promises to save money for businesses and their employees. But a leading consumer advocate in Maine said health savings accounts act as a tax shelter for the wealthy and are little more than "a cruel hoax" for average Mainers.
About a dozen people attended the educational luncheon organized by the politically conservative Maine Heritage Policy Center, which is based in Portland.
"It’s always easier to spend someone else’s money," said speaker Joel Allumbaugh, chief executive officer of the Hallowell-based National Worksite Benefit Group. If employees must first spend their own saved money, he said, they’ll think twice before seeking unneeded medical attention or ignoring advice to choose healthy lifestyles.
While health care spending accounts have been available in some form for many years, the specific version discussed Wednesday was authorized by the federal government in 2004.
Health savings accounts can supplement eligible high-deductible health insurance plans by allowing both employers and employees to deposit pretax dollars into specialized employee accounts. The money can be used solely for paying deductibles, co-payments, uncovered expenses and other out-of-pocket health care costs. Once the policyholder’s out-of-pocket spending limit has been met, the high-deductible plan’s regular insurance benefits take effect.
Unused money in the health savings account can accumulate from year to year, can "travel" with an employee when he or she changes jobs, and may be spent on nonmedical costs — though certain penalties apply if nonmedical spending occurs before retirement.
The system allows employers to purchase less expensive health plans with higher deductibles, saving money for themselves and their employees, Allumbaugh said. Setting up a health care savings account is optional for employees covered by eligible high-deductible accounts.
http://bangornews.com/news/t/news.aspx?articleid=164673&zoneid=500
By Meg Haskell
Staff Writer Bangor Daily News
BANGOR, Maine — A small group of area businessmen and businesswomen gathered at the Sea Dog Restaurant on Wednesday to hear a presentation about health savings accounts, a form of health care coverage that promises to save money for businesses and their employees. But a leading consumer advocate in Maine said health savings accounts act as a tax shelter for the wealthy and are little more than "a cruel hoax" for average Mainers.
About a dozen people attended the educational luncheon organized by the politically conservative Maine Heritage Policy Center, which is based in Portland.
"It’s always easier to spend someone else’s money," said speaker Joel Allumbaugh, chief executive officer of the Hallowell-based National Worksite Benefit Group. If employees must first spend their own saved money, he said, they’ll think twice before seeking unneeded medical attention or ignoring advice to choose healthy lifestyles.
While health care spending accounts have been available in some form for many years, the specific version discussed Wednesday was authorized by the federal government in 2004.
Health savings accounts can supplement eligible high-deductible health insurance plans by allowing both employers and employees to deposit pretax dollars into specialized employee accounts. The money can be used solely for paying deductibles, co-payments, uncovered expenses and other out-of-pocket health care costs. Once the policyholder’s out-of-pocket spending limit has been met, the high-deductible plan’s regular insurance benefits take effect.
Unused money in the health savings account can accumulate from year to year, can "travel" with an employee when he or she changes jobs, and may be spent on nonmedical costs — though certain penalties apply if nonmedical spending occurs before retirement.
The system allows employers to purchase less expensive health plans with higher deductibles, saving money for themselves and their employees, Allumbaugh said. Setting up a health care savings account is optional for employees covered by eligible high-deductible accounts.
http://bangornews.com/news/t/news.aspx?articleid=164673&zoneid=500
"When I stand before God at the end of my life, I would hope that I would not have a single bit of talent left, and could say, 'I used everything you gave me'."
Erma Bombeck (1927-1996)
Erma Bombeck (1927-1996)
